Lizhong Sitong Light Alloys Group Co Ltd

Lizhong Group released its 2026 half-year report, showing first-half net profit attributable to the parent of 577 million yuan, up 43.8% year on year, and operating revenue of 18.822 billion yuan, up 30.3% year on year. Second-quarter net profit attributable to the parent was 378 million yuan, up 58.1% year on year. The company's main businesses cover three segments: aluminum-based functional master alloys, recycled cast aluminum alloys, and aluminum alloy wheels. During the reporting period, revenue grew across all segments, with new energy vehicles and lightweighting trends driving higher demand for high-end products.

Recently, institutional investors have been conducting intensive research on A-share listed companies in the automotive industry. From July 1 to 12 p.m. on August 5, a total of 39 companies received 61 rounds of research, with over 500 institutions participating. Among them, 30 are auto parts companies. Feilong Auto Parts, Lizhong Group, and Sailun Tire hosted 99, 65, and 53 institutions respectively. Overseas expansion and global layout were frequently mentioned. Lizhong Group's Mexican plant with an annual capacity of 3.6 million aluminum alloy wheels has entered full production. Sinotruk's export sales accounted for more than half of its total in the first half of the year. BAIC BluePark plans to start KD production layout in Southeast Asia in the second half of the year. In terms of new businesses, Zhaomin Technology has developed multiple new precision components for humanoid robots. Xiling Power's harmonic reducer production line has an annual capacity of about 100,000 units. Changan Automobile has accumulated over 5 million kilometers of testing for Level 3 autonomous driving. On August 4, the mandatory national standard 'Safety Requirements for Intelligent Connected Vehicle Automated Driving Systems' was released, and is planned to be implemented on July 1, 2027.

On the evening of July 18, five ChiNext-listed companies—TFC Optical Communication, Xingchen Technology, Dangsheng Technology, Lizhong Group, and ThunderSoft—issued positive first-half profit alerts. TFC Optical Communication expects first-half net profit attributable to the parent of 1.124 billion to 1.304 billion yuan, up 25% to 45% year-on-year, mainly driven by global AI industry development and data center construction fueling demand for high-speed optical devices. Xingchen Technology expects first-half net profit attributable to the parent of 820 million to 900 million yuan, a surge of 583.72% to 650.42%, primarily due to a full-scale explosion in demand for edge-side AI industries. Dangsheng Technology expects first-half net profit attributable to the parent of 480 million to 530 million yuan, up 54.26% to 70.33%, benefiting from substantial sales volume growth in power, energy storage, and consumer market products. Lizhong Group expects first-half net profit attributable to the parent of 540 million to 585 million yuan, up 34.57% to 45.78%, thanks to optimized global production capacity layout and ramp-up of high-value-added products. ThunderSoft expects first-half net profit attributable to the parent of 238 million to 246 million yuan, up 50% to 55%, as the company's adherence to globalization and its AIOS strategy drives revenue growth of over 30%.

Lizhong Group has disclosed a preliminary plan for a convertible bond offering to non-specific investors, aiming to raise total proceeds of no more than 1.18 billion yuan. Of this, 450 million yuan will be invested in a project to produce 3 million ultra-lightweight aluminum alloy wheels and 180,000 forged commercial vehicle wheels annually. The project will be implemented by subsidiary New Wheel Manufacturing in the Rayong Industrial Park in Thailand, with a total investment of 1.05 billion yuan. The goal is to build the Thailand base into a key supply hub for core markets such as Europe and the United States to circumvent trade barriers. Domestically, 430 million yuan will be used for the upgrade and energy-saving renovation of a project to produce 2 million lightweight cast-spun aluminum alloy wheels per year. This will be carried out by wholly-owned subsidiary Baoding Lizhong Dongan Light Alloy Parts Manufacturing, with a total investment of 517 million yuan. It involves relocating and upgrading an old production line with an annual capacity of 2.8 million wheels. In addition, 100 million yuan will go toward the expansion and renovation of a microcrystalline silicon-aluminum composite new material and precision device project, which will add 85 tonnes of external sales capacity per year upon completion. Another 30 million yuan is earmarked for a high-end specialty master alloy research and development project, and the remaining 170 million yuan will supplement working capital.